Budget 2021 was announced amidst a global health pandemic which has already wreaked havoc on the economy, the Government are also faced with the prospect of a ‘No Deal’ Brexit in a matter of weeks.
With the SME sector, in particular, bearing the brunt of lockdowns and restrictions on their trading activities, businesses across all sectors were looking to the Ministers for some relief to ensure that they could face in to 2021 with at least some silver lining to the dark clouds that rolled in during 2020.
As it turns out, a budgetary package of almost €18bn, including a recovery fund of €3.4bn to tackle COVID-19 and Brexit, was announced.
Here, we take a look at how Budget 2021 affects small businesses and the self-employed:
- Earned Income Tax Credit for the self-employed increased by €150 to €1,650
- COVID-19 Restrictions Support Scheme announced for businesses forced to close or whose trade has been severely impacted by Government restrictions during COVID-19
- Changes to Pandemic Unemployment Payment – self-employed can earn up to €480 per month whilst still qualifying for the payment
- VAT rate on hospitality and tourism sector cut from 13.5% to 9%
- Tax Debt Warehousing Scheme set to be extended to include Temporary Wage Subsidy Scheme repayments and 2020 Preliminary Income Tax payments
- Commercial rates holiday extended for remainder of 2020
- Employment Wage Subsidy Scheme to be extended beyond March 2021
- State pension age to remain at 66 – had been due to increase to 67
- Enhanced Help to Buy Scheme extended for a further 12 months
- Carbon Tax has been increased by €7.50 to €33.50 per tonne
- Farming – Stamp Duty reliefs for transferring agricultural land extended
For the full TaxAssist Accountants Budget Summary, please click here.
For a 2021 Tax Rate Card, please click here.
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